Civil war in real estate families rages in court in San Francisco

Through a new investment firm called Mosser Capital — which he ran as CEO with Deborah’s son-in-law, Jim Farris — the couple solicited sovereign wealth funds, hedge funds and global insurance companies, as well as other capital partners, to finance a real estate buying spree, according to court documents.

Mosser Capital awarded property management contracts to Mosser Companies Inc. – thereby increasing the family’s pie.

The 2010s were a boom time for the family and the company. Demand for housing in San Francisco skyrocketed as the tech industry flourished, driving up rents. And the company’s portfolio grew as a result.

Mosser Capital reportedly acquired no fewer than 20 new apartment buildings in 2022 alone, spending over $150 million to acquire additional residential units in Los Angeles, San Francisco and Oakland.

As with many other companies in the industry, each new purchase was financed by taking out larger short-term loans, often at a variable interest rate.

The math made sense when the federal funds rate was low and occupancy rates were high. As long as the properties were generating cash flow, a borrower could afford to pay their lenders or convince them to refinance their loans and borrow more.